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Local poverty reduction in Chile and Mexico: The role of food manufacturing growth

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  • Cazzuffi, Chiara
  • Lopex, Mariana
  • Soloaga, Isidro
Abstract
This paper analyzes the relationship between local poverty and food manufacturing growth in Chile and Mexico using propensity score matching, differences in differences and spatial econometrics methods. We focus on food manufacturing as a sector with a number of characteristics that make it potentially pro-poor, and whose incentives for spatial distribution may either strengthen or dampen its poverty reduction potential. The overall results indicate that i) geographically, food manufacturing locates in relatively poor areas, but not in the poorest; ii) food manufacturing tends to locate in municipalities with more availability of labor and raw materials and with better infrastructure; iii) controlling for other factors, food manufacturing growth contributes to local poverty reduction both in terms of magnitude and speed.

Suggested Citation

  • Cazzuffi, Chiara & Lopex, Mariana & Soloaga, Isidro, 2015. "Local poverty reduction in Chile and Mexico: The role of food manufacturing growth," 2015 Conference, August 9-14, 2015, Milan, Italy 211449, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:211449
    DOI: 10.22004/ag.econ.211449
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    More about this item

    Keywords

    Consumer/Household Economics; Food Consumption/Nutrition/Food Safety;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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